The increase in labor costs was recorded across all categories, according to the report.
SANTO DOMINGO- Labor costs in the construction sector, along with some materials such as wire, nails, and zinc, experienced an increase of 12% or more last June, according to a report from the National Statistics Office (ONE).
The report states that in June 2024 the Direct Housing Construction Cost Index (ICDV) averaged 233.12, registering an increase of 8.88 points, compared to May which was 224.24.
Regarding cost groups and subgroups, the main monthly variations were observed in labor with an increase of 12.00%; and in the group of wires, nails, zinc and others with 12.78%, respectively.
According to the monthly bulletin published by the ONE each month, from December 2022 to date, the index has shown a cumulative increase of 5.79%.
“When comparing the results of June 2024 with those of June 2023, the index has shown a variation of 6.18%,” the organization highlights.
By type of housing, the ICDV was 236.19 for single-family housing with one level; 235.72 for single-family housing with two levels; 228.27 for multi-family housing with four levels; and 232.29 for multi-family housing with eight levels or more.
It adds that materials increased by 2.10%, while tools remained unchanged at 1.62%. It highlights decreases in machinery (0.35%) and subcontracts (-1.14%)
The ONE survey highlights that by cost subgroups, the main monthly variations are shown in labor at a general level, presenting an increase of 12.00%.
“This increase is reflected in every type of labor, including day laborers, electrical labor, excavation labor, masonry labor, steel labor, carpentry labor, and plumbing and sanitary installation labor,” he explains.
Regarding the decreases, the report states that they were observed in steels, with -0.02% and boat subcontracting, with -5.72%.
The ICDV is a statistical tool that allows us to know the monthly variations experienced by the cost of construction of four types of housing: single-family homes of 1 and 2 levels, and multi-family homes of 4 and 8 levels or more, in the National District and the province of Santo Domingo (indirect costs such as: land, design, construction permits, financial costs, profits of the construction company, etc. are excluded).
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